The document discusses special journals and their purposes. Special journals are used to overcome limitations of the general journal for large volumes of transactions. They subdivide the journal by transaction type into books like purchases, sales, cash, returns etc. This makes posting and locating transactions more efficient as similar entries are recorded together. While useful for large businesses, special journals may not be practical for small businesses with fewer transactions.

2.  When no. of transactions are large, it is
practically impossible to record all the
transactions through one journal.
 To overcome the shortcomings of the use of
Journal, the Journal is subdivided into special
journals
 Special Journals refer to the journal meant for
specific transactions of similar nature.

3.  posting of each entry becomes easy.
 as one type of transaction are recorded in one
books so it becomes convenient to locate any
desired transaction.
 important descriptions about the transaction
is also made in the related books so a lot of
information related to the transaction is
easily accessible.

4.  they may be expensive in case of a small
business as in a small business it is best to
keep journal.
 it requires some basic knowledge of
accountancy as if any of the entries are
recorded incorrect then it will be a problem
or they need to be rectified.

5.  Purchase book
 Sales book
 Cash book
 Purchase return book
 Sales return book

6.  This book is used for recording goods purchased
on credit.
 Goods here means only those things in which the
firm is dealing.
 It also known as invoice book, bought book or
purchased journal.
 It is not necessary to record the transaction in the
journal book where they are entered in the
purchases book.
 Cash purchases and purchases of furniture etc are
not recorded.

7. Date Particular Invoice
No.
L.F Amount

8. Enter the following transactions in the purchase book of Pawan
electric store, New Delhi
June 2 purchased goods from Surya electric store, Chandi chowk,
Delhi on credit (Invoice no-480)
40 Tube lights @ Rs 500 each; 15 Table fans @ Rs 2,000 each
Trade discount 20%
June 10 bought goods from New light Traders, Connaught Place,
New Delhi on credit (Invoice No. 2310)
10 ceiling fans @Rs 3,000 each; 20 electric Irons @ Rs 500 each
Tarde discount 10%
June 20 Purchased goods from Ravindra electric Co., Patel Nagar
new Delhi on credit (Invoice no 1508)
100 dozen Bulbs @Rs 600 per dozen; 20 water heaters@ Rs 1,000
each
Less: trade discount 25%
June 22 bought from sunny lamp, Lajpat Nagar, New Delhi for cash
(Invoice no 705) 5 electric irons @ Rs 480 each
June 28 Bought from fashion furniture Co., Chitra Gupta Road, New
Delhi on credit( Invoice no 3450)
12 chairs @RS 1,500 each; 2 Tables @ Rs 8,000 each

9. Date Particulars Invoi
ce
no
L
F
Details Amount
June 2
June
10
June
20
Surya electric store, Chandi
chowk, Delhi
40 Tubelights @Rs 500 each
15 table fans@ Rs2,000 each
Less:Trade discount 20%
New light traders, conn.
Place, new delhi
10 C.F. @ Rs 3,000 each
20 E.I @ Rs 500 each
Less: TD @ Rs 10%
Ravindra electri co, Patel
nagar
100 dozen bulbs @ Rs 600
20 W.H. @ Rs 1,000 each
480
20,000
30,000
50,000
10,000
30,000
10,000
40,000
4,000
60,000
20,000
80,000
20000
40,000
36,000
60,000
1,36,000

10.  Sales Book is used for the purpose of recording the
sale of goods on credit.
 It records neither the cash sales of the goods nor
sale of any asset other than merchandise.
 Entries in the sales book are made on the basis of
invoices issued to the customers with the amounts
net of trade / quantity discounts.

11. Date Particular Outward
Invoice no.
L.F Amount

12. Prepare sale book of Navketan furniture house, ldh
May 1 sold goods to five star furniture co., Patiala on credit
150 chairs@ Rs 1,800 each; 36 tables @ Rs 5,000 Each;
discount 20%
May 15 sold goods to Vishal furniture house, Amritsar-
10 almirahs@ Rs 11,000 each; 5 sofa sets @ Rs 18,000 each;
discount 15%
May 20 sold goods to parkas furniture House, New Delhi,
100 chairs @ Rs 2,000 each; less 5% discount
May 25 sold to Moonlight furniture co for cash
50 chairs @ Rs 1,900 each
June 28 sold on credit to Sunil Machinery store:-
2 old machineries @ Rs 5,000 per machine; 1 old computer for
Rs 1,200

13.  The book used for recording goods return for
the seller is called "Purchase Return Book".
 Also known as return outwards Books.
 While retuning goods buyer prepares debit
note.

14.  Various reasons for returning the goods to the supplier:
◦ Not according to the sample
◦ inferior quality goods
◦ defective goods or damage in transit
◦ Price charged in the invoice is in excess of the agreed price
◦ Goods not delivered on time
 Preparation of debit note along with the returned goods
◦ Includes name of the supplier, details of the goods and
reasons for returning the goods, should be numbered, dated,
and prepared in duplicate
◦ Original copy – with supplier , duplicate copy with you on
which basis entry is recorded in the purchase return book.

15. Date Particulars L.F Debit
Note
No.
Details Amo
unt

16. Q3. Enter the following transactions in the Purchase
Return Book of Sh. Gopal traders New Delhi
2012
 June 15 - Returned goods to Radha Krishan & Sons
for Rs. 20,000, trade discount 10% (debit note no.
140)
 June 20 – Returned goods to Gopal sons for Rs.
50,000 as goods were not according to the sample (
debit note no. 141)
 June 25- allowance claimed from Ragubir Parshad,
New Delhi, on account of mistake in the invoice Rs
10,000.( Debit note no 145)

17. Date Particulars L
F
Debit not
no
Details Amount
June 15
June 20
June 25
Radha Krishnan & Sons, New
delhi
Less: Trade discount 10%
Gopal sons New Delhi
Raghubir prashad
Total
140
141
145
20,000
2,000
50,000
10,000
18,000
50,000
10,000
78,000

18.  It is a book used for recording goods returned by the buyer.
 Also known as returns inward book
 While keeping records in sales return books sellers prepares a
credit note.
 Credit note contains details relating to the name of customer,
details of goods received back and the amount of return.
 Each credit note is numbered and dated
 It is prepared in duplicate and the original copy of the same is
sent to the party from whom goods were received.

19. Credit Note No.___
Address
Date- 5-February, 2021
To
Address of Customer
We are crediting your account with the value of
undermentioned goods returned by you for the
reason stated below:
For Name of company
Name of person
reasons Particulars Amount

20. Date Particular L.F. Credit
Note
No.
Details Amount

21. Prepare the sales return books of Ramlal & Co Hisar
April 6 goods returned by Ganga Prashad & Co,
Karnal-
1 Table Fan @ Rs 6,000
Less: Trade discount 15%
April 12 Shyam oil mills Yamuna Nagar returned
defective goods valued Rs 40,000
April 18 allowance allowed to Sanjay & Co Faridabad
on account of mistake in the invoice Rs 2,500